Scoobee Day Garments Faces Liquidity Challenges Amidst Sales Growth and Profitability Strain

Scoobee Day Garments India has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending September 2025. The company's net sales for the latest six months reached Rs 20.38 crore, showcasing a notable growth of 46.94%. Additionally, the profit after tax (PAT) for the nine-month period stands at Rs 0.05 crore, indicating some positive movement in profitability.
However, several challenges persist for Scoobee Garments. The operating cash flow has dipped to Rs -4.19 crore, marking a significant concern for liquidity. The quarterly PAT has also seen a drastic decline, reported at Rs -2.31 crore, which is a stark contrast to the previous four-quarter average. Other metrics, such as the debtors turnover ratio at 5.96 times and the profit before depreciation, interest, and tax (PBDIT) at Rs -2.11 crore, reflect ongoing operational difficulties. The earnings per share (EPS) for the quarter is recorded at Rs -1.71, further highlighting the financial strain.

In terms of market performance, Scoobee Garments has faced challenges compared to the Sensex, with a year-to-date stock return of -40.55% against the Sensex's 7.95%. Over the past year, the stock has declined by 10.43%, while the Sensex has gained 8.72%. Despite a remarkable 10-year return of 2740.98%, the recent trends indicate a need for strategic adjustments to enhance overall performance.